Canada’s auditor general has found that those involved in the contracting, development and implementation of the controversial Arrivecan application showed a “glaring disregard” for basic management practices.
Ultimately, Canadians “paid too much for this application,” according to Auditor General Karen Hogan.
In a new performance audit tabled on Monday, Auditor General Karen Hogan points to failures by the Canada Border Services Agency (CBSA), the Public Health Agency of Canada (PHAC), and Public Services and Procurement Canada (PSPC) in connection to their work on the COVID-19-era traveller contact application.
The report pegs the cost of the app at $59.5 million—more than the previously estimated $54 million—but cautions that the true cost was “impossible” to calculate because of CBSA’s “poor financial record keeping.”
Hogan told the House Public Accounts Committee that, while assessing the application, she came across the worst bookkeeping she’s seen in years.
“I am deeply concerned by what this audit didn’t find,” Hogan testified. “We didn’t find records to accurately show how much was spent on what, who did the work, or how and why contracting decisions were made. And that paper trail should have existed.”
Hogan issued eight overarching recommendations for reform, including one calling on implicated federal departments and agencies to improve their fiscal management, fully document interactions with contractors, and attach clear deliverables to contracts awarded.
“The lack of information to support ArriveCan spending and decisions has compromised accountability,” Hogan said. “Public servants must always be transparent and accountable to Canadians for their use of public funds. … Many questions that parliamentarians and Canadians are asking cannot be answered.”
The deep dive into the Canadian border application comes amid years of scrutiny by parliamentarians, and a series of news stories about the cost of the app, and the contracts awarded to build and maintain it.
“As a result of the many gaps and weaknesses we found in the project’s design, oversight, and accountability, it did not deliver the best value for taxpayer dollars spent,” reads the 30-page report.
In examining the paperwork connected to the border app, Hogan’s team of investigators found that CBSA heavily relied on external help which increased cost.
The agency also poorly managed contracts, and left “essential information,” such as deliverables and qualifications, out of them. This extended to the border agency paying invoices that contained few, if any details about the work completed.
Further findings about the government’s ill-managed border app, according to the auditor general, include:
Of the contractors examined, 18 per cent of invoices submitted did not provide enough information to determine whether their expenses related to ArriveCan or another IT project
Between April 2020 and October 2022, CBSA released 177 versions of ArriveCan “with often little to no documentation of testing,” including the June 2022 update that saw 10,000 travellers wrongly receive instructions to quarantine
The average per diem cost for the app to be worked on by external contractors was $1,090, whereas the average daily cost for equivalent IT positions within the federal government was $675
Of the overall estimated cost, $53.3 million went towards the app’s pandemic-response health component while $6.2 million went towards CBSA adding the digitized customs and immigration declaration form
“Practices to manage ArriveCan were missing at the most basic levels,” reads the report.
Audit backs up other reports
In January, after Canada’s procurement ombudsman Alexander Jeglic sifted through the ArriveCan contracts, he sounded the alarm about irregular contracting, including subcontractors who never actually did work on the app.
Hogan’s report backs this up, finding little documentation to support “how and why” the small consulting firm “GC Strategies” was awarded the initial ArriveCan contract. The audit also found evidence that the group “was involved in setting the requirements” that CBSA used, to tender a competitive contract.
The audit could not find any evidence that CBSA considered a proposal or any similar document from GC Strategies for its non-competitive contract and the agency’s IT department “did support the selection of GC Strategies with a sound justification.”
It has been reported that GC Strategies then went on to subcontract other companies to work on the app, while keeping a commission. According to Hogan’s report, after reviewing all available records, her team could not determine which agency official made the final decision to select GC Strategies.
“We found that in May 2022, the agency replaced the three non competitive contracts held by GC Strategies, which had been issued quickly and urgently, with a competitive contract. This new contract, valued at $25 million, was also awarded to GC Strategies, as it was the only contractor to submit a proposal,” reads the report.
“In our view, flaws in the competitive processes to award further ArriveCan contracts raised significant concerns that the process did not result in the best value for money.”
Moreover, Hogan’s report found “no evidence” to indicate CBSA employees complied with the agency’s code of conduct, by “disclosing that they had been invited to dinners and other activities by contractors.”
COVID-era app evolved
Introduced during the COVID-19 pandemic, ArriveCan became mandatory as a way to screen inbound travellers to Canada for their travel and health-related information, including vaccination status.
After months of defending the at-times glitchy application, and insisting it was a “critical tool” despite pressure from the travel industry and opposition MPs to scrap it, the federal government made the use of ArriveCan optional when it lifted a range of COVID-19 restrictions in October 2022.
Hogan’s report notes that the government’s decision to continue relying on external resources to keep the app alive beyond the initial pandemic period, “increased costs and brings into question the value achieved for money spent.”
Other probes continue
Taking place parallel to Hogan’s probe, is a study by the House of Commons Government Operations and Estimates Committee. That panel of MPs recently suspended its hearings into the app after reading a preliminary internal CBSA contracting conduct report.
Amid an uproar from the Conservatives who called it a cover-up, Liberal, Bloc, and NDP MPs said their pause was out of concern that further public disclosure related to the secret report’s findings could compromise ongoing investigations.
A year ago, Prime Minister Justin Trudeau tasked Canada’s clerk of the Privy Council with looking into what he’s said appeared to be “highly illogical and inefficient” practices surrounding the app’s contracting.
Further, as it has previously been reported and Hogan’s report confirms, matters related to “certain employees and contractors” have been referred to the RCMP.
According to the report, CBSA, PHAC, and PSPC have agreed with all of Hogan’s calls for reform, and have put a series of timelines on fulfilling various action items.
Hogan will be holding a press conference to further discuss her findings on Monday afternoon. It is also expected that the government and opposition parties will react to the report in the coming hours.
This is a developing story, check back for updates…
HOUSTON (AP) — Brian White scored in the second half to rally the Vancouver Whitecaps to a 1-1 draw with the Houston Dynamo on Wednesday night.
Houston (12-9-8) took a 1-0 lead into halftime after Ezequiel Ponce scored on a penalty kick in the seventh minute of stoppage time. Ponce’s third goal this season came after Amine Bassi drew a foul on Whitecaps midfielder Pedro Vite following a video review. It was Ponce’s sixth career appearance, all starts.
Vancouver (13-8-7) scored the equalizer in the 73rd minute when White, who entered in the 60th, used assists from Fafá Picault and Ryan Gauld to find the net for the 13th time this season. Picault’s assist was his fifth, matching his career high for a single season. Gauld’s assist gives him a career-best 13 on the season.
Yohei Takaoka, who had clean sheets in his last three starts, finished with one save in goal for the Whitecaps.
Steve Clark saved three shots for the Dynamo, who remain one point behind Vancouver in the Western Conference standings.
Houston, which was coming off a 4-1 victory over Real Salt Lake, has allowed just 33 goals this season.
Vancouver — 6-2-2 in its last 10 matches overall — leads the all-time series 10-9-6.
The Whitecaps remain on the road to play the Los Angeles Galaxy on Saturday. The Dynamo travel to play Austin FC on Saturday.
FOXBOROUGH, Mass. (AP) — Tom Pearce and Nathan Saliba scored in the second half — the first goals of their careers — and CF Montreal rallied for a 2-2 draw with the New England Revolution on Wednesday night.
“In the second half, the guys came out a little more ambitious and above all, more connected,” Montreal head coach Laurent Courtois said. “It was a great second half of resilience and fighting spirit. Nathan and Sam were impressive.
“Impressive in covering the gaps and compensating for the teammates, and the individual defending – yes it’s true, it is a lot of weight on their shoulders, but that’s the job.”
New England (8-16-4) jumped out to a 1-0 lead in the 24th minute on Bobby Wood’s third goal of the season. Teenage defender Peyton Miller notched his first assist in his fourth career start and sixth appearance and Carles Gil picked up his ninth of the season. Peyton, at 16 years, 315 days old, is the eighth youngest player in league history to record his first assist.
The Revolution took a two-goal lead in the 35th minute and held it through halftime when 19-year-old Esmir Bajraktarevic took a pass from Gil and scored his third goal of the season and career in his first full season in the league. It was the 73rd regular-season assist in Gil’s career, tying him with Steve Ralston for the most in club history.
Montreal (7-12-10) pulled within a goal in the 54th minute when Pearce scored off a free kick after defender George Campbell drew a foul on New England’s Mark-Anthony Kaye. It was the first goal for Pearce in his third career start and fourth appearance.
“Playoffs are the goal. Maybe it wasn’t in the best form, but in the end, we are picking up a point,” Pearce said. “We came into this game confident, ready to play our own game. Everyone tries their best, whenever the players are called on, we are always ready, and we are always giving it our best.”
Montreal scored the equalizer in the 68th minute on the first career goal by Saliba, a 20-year-old midfielder. Saliba has made 34 starts and 48 appearances with Montreal in his two seasons in the league. Campbell snagged his second assist of the season and the third of his career.
“It’s an incredible feeling, it’s a goal I’ve been waiting for a long time. I’m extremely happy that I was able to score it and that it can help the team take this important point on the road,” Saliba said. “Pearce’s first goal gave us really good momentum and we kept up the pressure to go for a second goal. We got more solid defensively, and we came back ready after halftime, to push for these 3 points.”
Aljaz Ivacic finished with four saves in goal for the Revolution.
Jonathan Sirois stopped four shots for Montreal.
New England beat Montreal 5-0 on the road on Aug. 24.
New England leads the all-time series 16-13-4. Montreal improves to 5-8-2 on the road against the Revs.
The Revolution travel to take on Charlotte FC on Saturday. Montreal returns home to host the Chicago Fire on Saturday.
ARLINGTON, Texas (AP) — Adolis García hit a two-run home run in the sixth inning, Cody Bradford pitched seven strong innings after the worst start of his career, and the Texas Rangers beat the Toronto Blue Jays 2-0 on Wednesday night.
The win kept the defending World Series-champion Rangers alive in the AL West race, trailing first-place Houston by 10 games with 10 to play.
García launched an inside sinker over the left-field wall off Toronto starter Bowden Francis (8-5) after Wyatt Langford singled.
“He swings hard, he swings a lot,” Francis said of García. “I guess the velo was dropping during that time.”
Bradford (6-3) allowed five hits and no walks while striking out six.
The seven shutout innings are the most in a game during his two-year career. He was knocked out of his previous start after allowing career highs in hits (nine), runs (eight) and homers (three) in 3 2/3 innings in a 14-4 loss at Arizona.
“Throughout the week, you’ve got to try and digest what happened, see where I can make adjustments, whether it was just game plan went wrong or just poor execution, or a little bit of both,” Bradford said. “Then you flush it.”
Bradford was perfect through four innings before Alejandro Kirk opened the fifth with a smash back to the mound that caromed off Bradford’s left foot and rolled into right field for a single. It extended Kirk’s hitting streak to a career-high 12 games.
Spencer Horwitz’s double to left-center put runners on second and third with no outs before Bradford retired the next three batters.
Blue Jays manager John Schneider credited Bradford’s “deceptive fastball.”
“When you’re throwing 89, 92, you’ve got to have pretty good deception with that at this level,” Schneider said. “Kept us off balance.”
Kirby Yates pitched a perfect ninth inning for his 31st save in 32 opportunities.
Francis, who took no-hitters into the ninth inning in two of his previous four starts, allowed a double to Marcus Semien, the Rangers’ first hitter of the game. He gave up five hits and one walk in six innings.
Francis has a 1.96 ERA in nine starts with 54 strikeouts and seven walks since being moved back into the starting rotation in late July.
“I don’t even want to get complacent, on cruise control,” Francis said. “Just keep attacking.”
TRAINER’S ROOM
Blue Jays: SS Bo Bichette was a late scratch with a right middle finger contusion suffered during infield practice. Schneider said the team will get back x-rays on Thursday. Bichette was activated Tuesday following a calf injury and played for the first time in two months, going 2 for 5 with one RBI at the plate. … INF Will Wagner (left knee inflammation) will have the knee scoped on Thursday. Schneider said Wagner should be ready to start spring training. Wagner, son of former major leaguer Billy Wagner, was acquired from Houston at the trade deadline.
UP NEXT
Rangers rookie RHP Kumar Rocker (0-0, 2.25 ERA) will make his home debut against Blue Jays RHP Kevin Gausman (12-11, 4.02) in the series finale. Rocker allowed one run in four innings at Seattle last Thursday in his major league debut.
